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Ansonia's industrial history runs deep: by the late 19th century the city was home to manufacturers of heavy machinery, electrical supplies, brass and copper goods, and silk products, and the Ansonia Clock Company began making its namesake clocks there in 1851. That manufacturing base declined through the mid-to-late 20th century as the Naugatuck Valley's brass sector fell into a prolonged slump, with mill closures and labor strikes through the 1960s and 1970s accelerating job losses that reshaped the local economy.

Today, health care and social assistance is Ansonia's largest employment sector with about 2,026 workers, followed by accommodation and food services at 1,253 and retail trade at 1,231, reflecting a shift toward service-based work. The city has tried to rebuild its commercial and industrial footprint since the late 1980s through the Fountain Lake Commerce Park on its northwest border, though development there has moved slowly, with reports as recent as 2021 noting the site still lacked tenants years after work began.

With healthcare, food service, and retail now the largest employers and a stalled commerce park limiting new commercial anchors, Ansonia's local-service demand centers on the households and small businesses filling the gap left by manufacturing: dentists, family medical practices, HVAC and plumbing for the city's older housing stock, and legal or accounting help for small retail and hospitality operators.